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Coca Cola Pvt.


Project Report: Coca Cola Pvt. Limited

Coca Cola Pvt. Limited

Coca Cola Pvt. Limited

Mission statement is a statement of organizations purposes that what it wants to accomplish. In order to achieve mission of increasing market share and maintaining good relations with our customers all over the world, we wish to create value for all the constraints we serve, including our consumers, our bottlers, and our communities. The Coca Cola Company creates value by executing business strategy guided by four key beliefs:

Customer is king; Customer demand drives everything we do. Brand Coca Cola is the core of our business. We will serve consumers a broad selection of the nonalcoholic ready-todrink beverages they want to drink through out the day. We will be the best marketers in the world.

The ultimate objective of our business strategy is to increase volume, expand our share of worldwide nonalcoholic beverages sale and to maximize our long-term cash flows. We keenly focus on enhancing value for our customers and helping them grow their beverage business. We strive to understand each customers business and needs, whether that customer is a sophisticated retailer in a developed market or a kiosk owner in an emerging market. Ultimately, our success in achieving our mission depends on our ability to satisfy more of their beverage consumption demands and our ability to add value for customers. We achieve this when we place the right products in the right markets at the right time. The basic proposition of our business is simple and solid that is we want to bring refreshment, value, joy and fun to all our consumers. For that we strongly believe to protect our brands, particularly Coke.


Coca Cola Pvt. Limited

A token of special thanks to the following people who had been very friendly, co-operated with us throughout our visit to CCBPL Lahore plant and made it possible for us to learn and gather all the information needed for our project report in as much detail as we could. These are the people who in spite of their busy scheduling took time out to explain to us the procedures and mechanics of work in the organization. Our project report would not have been possible without their friendly and helpful attitude. Mr. Amir Faisal Hashmi (Human Resources & Industrial Relation Manager) Mobile # 0300-8456707 E-mail id: Mr. Eiraj Saleh Daud (Marketing and Sales Manager) 0300-8462122 E-mail id:

Factory Address
23km Riawand Road Lahore. . Pakistan. Factory Phone: 5320010-4

Table Of Contents

Coca Cola Pvt. Limited

Page # Mission Statement Acknowledgement

History of Coca-Cola Coke History in Pakistan 7 8

Target Marketing Marketing Mix

PRODUCT Product Range Packing Product Strategy Level Of Coke Branding Product Line Decisions

10 10 10 11 12 12 13 13 13 13 13 14 14 14 14

Price Price strategy Trade Promotion Different Prices

Availability Distribution Channels Direct Selling In-Direct Selling

Coca Cola Pvt. Limited Market Segmentation Coke Segmentation Strategy Geographic Segmentation Demographic Segmentation Behavior Segmentation 14 15 15 15 16

Promotion Strategies Publicity Price Scheme Promotion campaign

17 18 18 19

Conclusions and Recommendations



Coca Cola Pvt. Limited

History of Coca-Cola:
Coca-Cola Enterprises was established in 1986 is a young company by the standards of the Coca-Cola system. Yet each of its franchises has a strong heritage in the traditions of Coca-Cola that is the foundation for this Company. The Coca-Cola Company traces its beginning to 1886, when an Atlanta pharmacist, Dr. John Pemberton, began to produce Coca -Cola syrup for sale. However the bottling business began in 1899 when two Chattanooga businessmen, Benjamin F. Thomas and Joseph B. Whitehead, secured the exclusive rights to bottle and sell Coca -Cola for most of the United States from The Coca -Cola Company. The Coca-Cola bottling system continued to operate as independent, local businesses until the early 1980s when bottling franchises began to consolidate. In 1986, The Coca-Cola Company merged some of its company -owned operations with two large ownership groups that were for sale, the John T. Lupton franchises and BCI Holding Corporation's bottling holdings, to form Coca-Cola Enterprises Inc. The Company offered its stock to the public on November 21, 1986, at adjusted prices of $5.50 a share. On an annual basis, total unit case sales were 880,000 in 1986.In December 1991; a merger between Coca-Cola Enterprises and the Johnston Coca-Cola Bottling Group, Inc. (Johnston) created a larger, stronger Company, again helping accelerate bottler consolidation. As part of the merger, the senior management team of Johnston assumed responsibility for managing the Company, and began a dramatic, succes sful restructuring in 1992.Unit case sales had climbed to 1.4 billion, and total revenues were $5 billion at the year-end. Presently The Coca-Cola Company is the largest soft drink company in the world. Every year 800,000,000 servings of just "Coke" are sold in the U.S alone.

Coke History in Pakistan 51 Years of dedicated service

The Coca-Cola Company began operating in Pakistan in 1953. Coke, Fanta and Sprite are the brands with whom Coca-Cola is operating in Pakistan. The Coca-Cola System in Pakistan operates through eight bottlers, four of which are majority-owned by Coca-Cola Beverages Pakistan Limited (CCBPL). The CCBPL plants are in Karachi, Hyderabad, Sialkot, Gujranwala, Faisalabad, Rahimyar Khan,

Coca Cola Pvt. Limited

Multan and Lahore. The remaining two plants, independently owned, are in Rawalpindi and Peshawar. The Coca-Cola System in Pakistan serves 70,000 customers/retail outlets. The Coca-Cola System in Pakistan employs 1,800 people working constantly for the company. During the last two years, The Coca-Cola Company in Pakistan has invested over $130 million (U.S) and coke has successfully provided 51 years of dedicated service to its customers in Pakistan. Since the beginning of Coke Company the firm has been continuously changing its slogans and thats a very creative idea to get the attention of the customers. Here we would like to include some of the popular slogans of coke since the coke journey started. 1886 Drink Coca-Cola 1908 Get the genuine 1923 Enjoy thirst 1934 When it's hard to get started, start with a Coca-Cola 1942 The only thing like Coca-Cola is Coca-Cola itself 1956 The friendliest drink on earth 1963 Things go better with Coke 1993 Always. Coca-Cola 2001 Life is Good 2003 Jo Chaho Ho Jaye Coca Cola Enjoy] 2005 geo coke zindagi 2009 very Brrrrrrrrrrrrrrrrrrrrrrrrr hai coke zindagi

Target Marketing:
This is the process of evaluating each market segments attractiveness and selecting one or more segments to enter. After evaluating different segments, the company must now decide which and how many segments it will target, because buyers have unique needs and wants, a seller could potentially view each buyer as a separate target market. Ideally, then, a seller might design a separate marketing program for each buyer. There are three types of market segments. Undifferentiated marketing. (Mass Marketing) Differentiated marketing. (Segmented Marketing)

Coca Cola Pvt. Limited

Marketing Mix of Coca-Cola

Product Price Place Promotion
Product Functionality Appearance Quality Packaging Brand Warranty Service/Support Price List price Discounts Allowances Financing Place Channel members Promotion Advertising

Channel motivation Personal selling Market coverage Locations Public relations Message Media Budget

Leasing options Logistics Service levels

Coca-Cola the worlds most popular beverages .The popularity of Coke is to such an extent that The most known and spoken word in world after OK is COKE

Product Range
The total range of Coca Cola Company in Pakistan includes: Coke, Sprite Fanta Diet coke

Coca Cola Pvt. Limited


And company offers their products in different bottle sizes these include: SSRB LRB NRB PET 1.5 CANS (standers size returnable bottle) (litter returnable bottle) (no return bottle) or disposable bottle (1.5 litter plastic bottle) (tin pack 330 ml)

Coca cola products are available in different packing 24 regular bottle shells 6 bottle pack for 1.5 pets 12 bottles in a pack for disposable bottle 24 cans in one packet.

Product strategy
Product: Anything that can be offered to a market for attention, acquisition, use or consumption that might satisfy a want or need.

Levels of coke as a product

Core product:
Core benefit is that it fulfills the thirst.

Actual product:
Design: Pet bottles, returnable glass bottles, economy packs. Quality: Quality differs with respect to country for example. Coca-Cola Can quality that is available in Middle East is certainly different as compared to Coke Can available in Pakistan.

Product Classifications:

Coca Cola Pvt. Limited


Coke is categorized as a convenience product, because the purchasing rate is very high and this is the product that is bought very frequently. Individual product decisions

Branding: a) Brand Equity:

As far as coke is concerned brand equity for the customers is very high. People are highly brand loyal.

b) Brand Strategy:
The following is the brand strategy of Coke


Existing Existing Line extension Multi-Branding

New Brand extension New brands


Line Extension:
Line extension occurs when a company introduces additional items in a given product category under the same brand name. For example if Coke introduces new flavors and package size, it will be considered as line extension.

Brand Extension:

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Brand extension means using a successful brand name lets say Coca-Cola and then launching new product for example cherry coke. This was an example of brand extension.

It means introducing additional brands in the same category. For example Coca-Cola not only introduced coke as a brand but also sprite and Fanta.

It means introducing new product with the new brand name. It means diversification but this is something Coca-Cola has not adopted for as yet.

Product Line Decisions: Product Line Length:

It means the number of products that company is offering. For example Coke, Diet Coke, Fanta , Sprite.

Product Line Filling:

Product line filling means that earlier when Coca-Cola started it had only one flavor of coke available and that is classic coke but with the passage of time company filled the product line by adding diet coke, diet lemon etc

Rs.10/- for 250-ml bottle, Rs.25/- for tin. Rs.30/- for 1 liter bottle. Rs.40/- for 1.5 liter bottle. Very economical justifies the ultimate taste and joy provided by the beverage of and on price cuts are provided to customers.

Trade Promotion

Coca Cola Pvt. Limited

Coca Cola Company gives incentives to middle men or retailers in way a that they offer them free samples and free empty bottles, by this these retailers and middle man push their product in the market. And thats why coca cola seen more in the market. And they have a good sale in the market because according to the expert which product seen more in the market that sells more. Seen as sold They do agreements with a shop keepers and stores to exclusive sale in that stores. These stores are called as KEY accounts in their local language. And coke also invest heavy budget on these stores and offers them free samples and free bottles and some time cash incentives.


Different Price in Different Seasons

Some times Coca Cola Company changes their product prices according to the season. Summer is supposed to be a good season for beverage industry in Pakistan. So in winter they reduce their prices to maintain their sales and profit. But normally they reduce the prices of their pet bottles or 1 litter glass bottle. Pricing Strategy Coke Pricing strategy Explanation of pricing strategy, Meet-the-competition pricing. The Coca-Cola products pricing are set around the same level as its competitors. Most of the Coca-Cola products use this method of pricing. For example, for a pack of 250ml of CocaCola it is priced at Rs.12 instead of Rs.10.00.This pricing strategy makes consumers perceive the products to be affordable. Like any company who has successfully endured a century of existence, Coca Cola has had to remain tremendously fluent with their pricing strategy. They have had the privilege of a worthy competitor constantly driving them to be smarter, faster, and better. A quote from Pepsi Co's CEO "The more successful they are, the sharper we have to be. If the Coca Cola Company didn't exist, we'd pray for someone to invent them." The relationship between Coca Cola & Pepsi is a healthy one that each corporation has learned to appreciate. Throughout the years Coca Cola has made many pricing decisions but one might say that their ultimate goal has always been to maximize shareholder value. In order to grab market share most of time Pepsi began to drop prices (even with summer approaching). Shortly thereafter, Coca Cola decided to drop their prices slightly, but focused on the reduced price point of their 200mL container. Coca Cola planned to use the lower price point to penetrate new cities that were especially price sensitive. The carbonated soft drink market in Pakistan is nearly 57% of the total beverage market there. Coca Colas first used low-price strategy in the early 1990s. After annihilating the low price store brands, Coke chose to reposition itself as a "Premium" brand and then raise prices. They are sticking

Coca Cola Pvt. Limited


with this strategy as it is working. They are positioning themselves as premium product for having fun in life. Position support Pricing Coca Cola has been doing continuous focus on its price related positioned. With the help of experience of over the years coca cola has finally emerged with the best marketing strategy of its time and successfully maintained its position as an affordable enjoyment of life. Place

Available in all main as well as posh and backward areas in big cities, Available to some extent in posh areas of small cities Available in all restaurants and hotels, colleges, universities, hospitals, bus stops etc.

Coca Cola Company makes two types of selling Direct selling Indirect selling Direct Selling In direct selling they supply their products in shops by using their own transports. They have almost 250 vehicles to supply their bottles. In this type of selling company have more profit margin. Indirect Selling They have their whole sellers and agencies to cover all area. Because it is very difficult for them to cover all area of Pakistan by their own so they have so many whole sellers and agencies to assure their customers for availability of coca cola products. FACILITATING THE PRODUCT BY INFRASTRUCTURE For providing their product in good manner company has provided infrastructure these includes: Vizi cooler Freezers Display racks Free empty bottles and shells for bottles

Market segmentation:

Coca Cola Pvt. Limited

Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes. In evaluating different market segments, a firm must look at three factors: Segment size Segment growth Segment structural attractiveness and company objectives and resources.


There is no single way to segment a market. The market has to try different segmentation variables, alone and in combination, to find the best way to view the market structure.

Concentrated marketing.

(Segmented Marketing, small segment)

Coke segmentation strategy:

Coca cola servers its products using mass marketing technique, which obviously falls in undifferentiated marketing, and undifferentiated marketing means no segmentation, but there are minor factors on which we can say that the coke segments its products and then targets the customers somehow. These factors are as follows.

Geographic Segmentation:
Coke segments its products country wise and region wise, here the most important thing is the taste and the quality, it varies according to the taste and the income level of the people in that country, i.e. Third world counties are given low quality taste.

In coke marketing, main idea is to serve it cold, so we can say that, they focus more on hot areas of the world, i.e. middle east etc and there sale increase in summer.

In Pakistan the coke segments more in urban and suburban areas as compare to rural.

Demographic Segmentation:
Internationally coke has segments the small children introducing tastes like vanilla, lime and cherry, they focus children from 4-12. Coke specifically target more young people than older.

Coca Cola Pvt. Limited Family type:

Coke introduces its economy pack, and thats how they focus family and groups. A question to Amer pasha Country Manager


Pepsi is targeting exactly the same market, and music is also a part of their brand image, so where does the differentiation lie in your approach?

Pepsis brand personality is different, ours is about togetherness, about us. Coke will always show activities, where people get together to enjoy moments of togetherness with our brand. Our research indicates that youngsters love to get together, and it is when they are enjoying themselves, that will consume coke. For Pakistani youth, socializing with friends and family is core behavior in their lives. Cokes brand personality is also about togetherness.

Coke segments different income levels by packaging. Like for small income people it has small returnable glass bottle, for middle people it has non returnable bottle and for higher income people it has coke tin.

Psychographics Segmentation:
All psychographics variables the social class, lifestyle, occupation, level of education and personality, coke segments everyone, but again its there packaging which is different for different consumers.

Behavioral Segmentation:
Thanks to the Coca-Cola Company the local festival of Basant has become and international event and an identity of the culture of Pakistan. Over the year the annual spring festival of Basant has taken on mega proportions. Previously restricted largely to the walled city, the festivities now flood every nook and corner of Lahore. The credit for making the celebrations available to almost everyone largely goes to The Coca-Cola Company. In 2003, Coke was once again nominated as the official sponsor for the Basant festival bye the parks& horticulture authority, Lahore for the fourth year running. In these four years, the company has played a pioneering role in making the Basant festival major social and culture event in Pakistan. (The News on 50th anniversary of the Coca-Cola in Pakistan.)

Coca Cola Pvt. Limited Benefits Sought:


Sometimes, for the promotion strategy of coke, they introduce prizes in the top cover. So they segment people by benefit sought, i.e. by giving them prizes.

To promote the Coca-Cola, Fanta, and Sprite 3G the company uses the following tactics or ways

Advertisements with catchy slogans

Coca-Cola enjoys Always Coca-Cola. Eat Cricket, sleep cricket, and drink Coca-Cola.

Sports e.g. cricket matches and hockey. Events e.g. basant festivals. Concerts. Artist album e.g.Arar-ul-Haq.

Getting shelves They gets or purchase shelves in big departmental stores and display their products in that shelves in that style which show their product more clear and more attractive for the consumers. Eye Catching Position Salesman of the coca cola company positions their freezers and their products in eye-catching positions. Normally they keep their freezers near the entrance of the stores. Sale Promotion Company also do sponsorships with different college and schools cafes and sponsors their sports events and other extra curriculum activities for getting market share. UTC Scheme

Coca Cola Pvt. Limited

UTC mean under the crown scheme, coca cola often do this type of scheme and they offer very handy prizes in it. Like once they offer bicycles, caps, TV sets, cash prizes etc. This scheme is very much popular among children.


Coca Cola Company use different mediums Print media Pos material TV commercial Billboards and holdings Print Media They often use print media for advertisement. They have a separate department for print media. Pos Material Pos material mean point of sale material this includes: posters and stickers display in the stores and in different areas. TV Commercials As everybody know that TV is a most common entertaining medium so tv commercials is one of the most attractive way of doing advertisement. So Coca Cola Company does regular TV commercials on different channels

Prize schemes:
Coca-Cola glasses. Bicycles. TV (16, 21.28)

Prize cuts from time to time.

Ramadan offer. Eid offer. Buy one get one free. Anniversary offer. Independence Day offered.

Coca Cola Pvt. Limited


Billboard electronic sign board

In major public areas, liberty bank square. At centre point.etc.

Promotional campaigns of coke:

The Coca-Cola Company sponsors the basant festivals in Lahore, a festival that marks the beginning of spring and attracts visitors from all over the world. Part of the festivals is Coca-Cola kite flying championship.

Concerts and charity programs:

The Coca-Cola Company sponsors Pakistani leading pop group and organizes concerts and charity shows throughout the country for teen ages and underprivileged children.

Cricket players for promotion:

The company has signed a sponsorship agreement with eight of Pakistans national cricket players for promotional and advertising use.

Coca Cola Pvt. Limited


Conclusion & Recommendations:

After thorough research, we come to the conclusion that the marketing strategy of Coca Cola is working for them and the product is gaining popularity among youth day by day

Bottle shape Repositioning of flavored Fanta Should be flexible in policies Prize schemes Prize schemes Instead of large expensive gifts, prize schemes should constitute of small, inexpensive gifts e.g. CocaCola penal case. Coca-Cola pen, key chains, T-shirts, Cups, bottles in each cerate could contain prizes. This would be a much effective scheme to increase sales.

Should be flexible in policies

CCI should allow some degree of freedom in its policies and work procedures and policies according to the environment and conditions of Pakistan without having to ask for permission every time.

They must use same curved bottle shape for all brands

Developing The Marketing Mix The marketing mix is probably the most crucial stage of the marketing planning process. This is where the marketing tactics for each product are determined. The marketing mix refers to the combination of the four factors(price, promotion, product, place) that make up the core of a businesss marketing strategy. In this step of the marketing planning process, marketing mix must be designed to satisfy the wants of target markets and achieve the marketing objectives. The most successful businesses have continually monitored and changed their marketing mix due to respective internal and external factors and have monitored the external business environment in order to maximise their marketing mix components.

Coca Cola Pvt. Limited


Product: Many Products are physical objects that you can own and take home. But the word product means much more than just physical goods. In marketing, product also refers to services, such as holidays or a movie, where you enjoy the benefits without owning the result of the service. Businesses must think about products on three different levels, which are the core product, the actual product and the augmented product. The core product is what the consumer is actually buying and the benefits it gives. Coca Cola customers are buying a wide range of soft drinks. The actual product is the parts and features, which deliver the core product. Consumers will buy the coke product because of the high standards and high quality of the Coca Cola products. The augmented product is the extra consumer benefits and services provided to customers. Since soft drinks are a consumable good, the augmented level is very limited. But Coca Cola do offer a help line and complaint phone service for customers who are not satisfied with the product or wish to give feedback on the products. Positioning Once a business has decided which segments of the market it will compete in, developed a clear picture of its target market and defined its product, the positioning strategy can be developed. Positioning is the process of creating, the image the product holds in the mind of consumers, relative to competing products. Coca Cola and Franklins both make soft drinks, although Franklins may try to compete they will still be seen as down market from Coca Cola. Positioning helps customers understand what is unique about the products when compared with the competition. Coca Cola plan to further create positions that will give their products the greatest advantage in their target markets. Coca Cola has been positioned based on the process of positioning by direct comparison and have positioned their products to benefit their target market. Most people create an image of a product by comparing it to another product, thus evident through the famous battles between Coca-Cola and Pepsi products. Branding It is often hard to say exactly why we buy one companys product over another. Companies such as Nike and Adidas spend large amounts of money trying to win consumers away from their competitors who make products that are very similar. The popularity of the brand is often the deciding factor. Over the time Coca Cola has spent millions of dollars developing and promoting their brand name, resulting in world wide recognition. 'Coca-Cola' is the most recognised trademark, recognised by 94% of the world's population and is the most widely recognised word after "OK". Coca Colas red and white colours and special writing are all examples of world-wide trademarks. There are a number of branding strategies: Generic brand strategy, Individual brand strategy, Family brand strategy, Manufacturers brand strategy, Private brand strategy and Hybrid brand strategy. Coca Cola utilizes the Individual brand strategy as Coca Colas major products are given their own brand names e.g Fanta, Sprite, Coca Cola etc although they maybe presented as different lines they operate under the name of Coca Cola. Packaging Packaging, which is not as highly perceived by businesses, is still an important factor to examine in the marketing mix. Packaging protects the product during transportation, while it sits in the shelf and during use by consumers, it promotes the product and distinguishes it from the competition. Packaging can allow the business to design

Coca Cola Pvt. Limited


promotional schemes, which can generate extra revenue and advertisements. Coca-Cola has benefited from packaging the product with incentives and endorsements on the labelling as a promotional strategy to increase its volume of sales and revenue. Price: Price is a very important part of the marketing mix as it can effect both the supply and demand for Coca Cola. The price of Coca Colas products is one of the most important factors in a customers decision to buy. Price will often be the difference that will push a customer to buy our product over another, as long as most things are fairly similar. For this reason pricing policies need to be designed with consumers and external influences in mind, in order to effectively achieve a stable balance between sales and covering the production costs. Price strategies are important to Coca Cola because the price determines the amount of sales and profit per unit sold. Businesses have to set a price that is attractive to their customers and provides the business with a good level of profit. Long before a sale was ever made Coca Cola had developed a forecast of consumer demand at different prices which inevitably determined whether or not the product came on the market, as well as the allocation of adequate money and resources to produce, promote and distribute the product. Pricing Strategies And Tactics The pricing Strategy a business will use will have to focus on achieving the marketing plans objectives and support the positioning of the product, and take external factors such as economic conditions and competitors in to account. There are 5 strategies available to business: Market skimming pricing, Penetration pricing, Loss leaders, Price Points and Discounts. Over the years Coca Cola has used Penetration Pricing as a way of grabbing a foothold in the market and won a market share. Its product penetrated the marketplace. Once customer loyalty is established as seen with Coca Cola it is then able to slowly raise the price of its product. There has been a fierce pricing rivalry between Coca Cola and Pepsi products as each company competes for customer recognition and satisfaction. Till now it appears as if Coke has come up on top, although in order to gain long term profits Coke had to sacrifise short term profits where in some cases it either went under of just broke even, but as seen it has been all for the best. Pricing Methods Good pricing decisions are based on an analysis of what target customers expect to pay, and what they perceive as good quality. If the price is too high, consumers will spend their money on other goods and services. If the price is too low, the firm can lose money and go out of business. Pricing methods include: Cost based Pricing, Market based pricing and Competition based Pricing. Over the years Coca has lost ground here in its pricing but has regained its strength as it employed the Competitionbased pricing method which allowed it to compete more effectively in the soft drink market. Leader follower pricing occurs when there is one quite powerful business in the market which is thought to be the market leader. The business will tend to have a larger market share, loyal customers and some technological edge, thus the case currently with Coke, it was first the follower but through effective management has now become the leader of the market and is working towards achieving the marketing objectives of the Coca Cola. Survival in the market place, own 60 % of market share by 2007, increase further awareness of product and a return on 20% on capital employed for August 2007. Promotion: In todays competitive environment , having the right product at the right place in the right place at the right time may still not be enough to be successful. Effective

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communication with the target market is essential for the success of the product and business. Promotion is the p of the marketing mix designed to inform the marketplace about who you are, how good your product is and where they can buy it. Promotion is also used to persuade the customers to try a new product, or buy more of an old product. The promotional mix is the combination of personal selling, advertising, sales promotion and public relations that it uses in its marketing plan. Above the line promotions refers to mainstream media:Advertising through common media such as television, radio, transport, and billboards and in newspapers and magazines. Because most of the target is most likely to be exposed to media such as television, radio and magazines, Coca Cola has used this as the main form of promotion for extensive range of products. Although advertising is usually very expensive, it is the most effective way of reminding and exposing potential customers to Coca Cola Products. Coca Cola also utilizes below the line promotions such as contests, coupons, and free samples. These activities are an effective way of getting people to give your product a go.

Place and Distribution: The place P of the marketing mix refers to distribution of the product- the ways of getting the product to the market.The distribution of products starts with the producer and ends with the consumer.One key element of the Place/Distribution aspect is the respective distribution channels that Coca Cola has elected to transport and sell its product. Selecting the most appropriate distribution channel is important, as the choice will determine sales levels and costs. The choice for a distribution channel for any business depends on numerous factors, these include: How far away the customers are; The type of product being transported; The lead times required; and; The costs associated with transport;There are four types of distribution strategies that Coca Cola could have chosen from, these are: intensive, selective, exclusive and direct distribution. It is apparent from the popularity of the Coca Colas product on the market that the business in the past used the method of intensive distribution as the product is available at every possible outlet. From supermarkets to service stations to your local corner shop, anywhere you go you will find the Coca Cola products. Physical Distribution Issues Coca Cola needs to consider a number of issues relating to the physical distribution of its soft drink products. The five components of physical distribution are, order processing, warehousing, materials handling, inventory control, transportation. Coca Cola must further try to balance their operations with more efficient distribution channels.

Coca Cola Pvt. Limited


Order Processing- Coca Cola cannot delay their processes for consumer deliveries (i.e. delivery to selling centers), as this is inefficient business functioning and is portrays a flawed image of the product and overall business.Warehousing and inventory controlwarehousing of Coca Cola products is necessary. Inventory control is another important aspect of distribution as inventory makes up a large percentage of businesses assets. Choosing the correct and desired inventory measure that Jacksons sees as most effective is vital. Jacksons must remember though that there are factors involved with inventory control that can hinder the products sales and customer perceptions (hazards, distribution from storage facilities, etc).Materials handling- this deals with physically handling the product and using machinery such as forklifts and conveyor belts. When holding products, then Coca Cola has benefited from purchasing or renting respective machinery. Transportation- transporting Coca Cola products is the one most important components of physical distribution. Electing either to transport the sports drink by air, rail, road or water depends on the market (i.e. global, or domestic?) and depends on the associated costs. The most beneficial transportation method for Coca Cola would be ROAD if the product were moved around from storage to the cost centers. Implementing, Monitoring And Controlling Financial Forecasts Financial forecasts are predictions of future events relating strictly to expected costs and revenue costs for future years. There are five major marketing expenditures, which include research costs, product development costs, product costs, promotion costs and distribution costs. Sales force composite is the most logical method in forecasting revenue. This involves estimates from individual salespeople to sell to work out a total for the whole business. Once these costs and revenues are forecasted, management can then decide which combination of marketing mix strategies will deliver the most sales revenue at the lowest cost. Implementing Implementation is the process of turning plans into actions, and involves all the activities that put the marketing plan to work. Successful implementation depends on how well the business blends its people, organisational structure and company culture into a cohesive program that supports the marketing plan. For its further success, Coca Cola must impose several key changes. Production needs to be on time and meet the quota demanded from wholesalers. It must also be efficient so as not to build inventory stocks and inventory prices. The marketing needs to be motivated and knowledgeable about the product. The forms of promotion such as advertising must be attracting and enticing to the target market to get the greatest amount of exposure possible for the product. This will ensure the success of the product in the stores. Distribution of the product must be efficient. This problem has already been taken care of with convenient transport routes to commercial areas and transport already being arranged. Monitoring And Controlling Monitoring and controlling allows the business to check for variance in the budget and actual. This is important because it allows Coca Cola to take the necessary actions to

Coca Cola Pvt. Limited


meet the marketing objectives. There are three tools Coca Cola should use to monitor the marketing plan. They are the following: i. Sales AnalysisThe sales analysis breaks down total business sales by market segments to identify strengths and weaknesses in the different areas of sales. Sellers of Coca Cola products vary from major retail supermarkets to small corner stores. This gives the its products maximum exposure to customers at their convenience. ii. Market Share AnalysisMarket share analysis compares Coca Colas business sales performance with that of its competitors. Coca Cola looks to increase its market share by over 60%. With the changes Coca Cola is currently undergoing, they aim to regain an iron fist control of the market. Target market various age groups and lifestyles from high school students too universities, and male or female. Marketing Profitability AnalysisThis analysis looks at the cost side of marketing and the profitability of products, sales territories, market segments and sales people. There are three ratios to monitor marketing profitability; they are market research to sales, advertising to sales and sales representatives to sales. The results of these three tools can help Coca Cola determine any emerging trends, such as the need for a different product. Comparing these results with actual results gives the business an idea on when to change. Market Research When attempting to implement a new Marketing plan a business must address its target market and conduct the relevant information to insure the new marketing plan both differs from the old and is better for the business. When conducting market research a business must first define the problem and then gather the appropriate information to solve the problem. There are 3 types of information a business can gather to solve its problems.->Exploratory Research which clarifies the problem an d searches for ways to address it.->Descriptive Research is used to measure and describe things like the market potential for a product and characteristics of the target market. ->Casual Research is used to test a hypothesis about a cause and effect relationship.Coca Cola through its market research has addressed all three types of research to define the problem raised by shareholders and gathered information to serve their needs. Factors Influencing Consumer Choice When making decisions on products a business must look at factors that influence consumer choice such as psychological factors, Sociocultural factors, Economic factors and Government Factors.Psychological Factors: such as motivation, perception, lifestyle, personality and self concept, learning , and attitudes influence the consumers behaviour towards a product and Coca Cola has addressed this issue by introducing Diet Coke to satisfy different lifestyles. Sociocultural factors: such as culture, subculture, socioeconomic status, family and reference groups influence the consumers behaviour towards a product.Economic factors: such as Disposable income and discretionary income. Coca Cola has addressed this side of the influence by maintaining a low price on the price of its products.Government Factors: such as new regulations, inflation, interest rates all influence consumer spending and choice.